Mercedes Mullins
Canada, which has the world's third-largest oil reserves, imports tens of billions of dollars' worth of oil annually, particularly into its eastern regions. In 2023, Canada imported 16.9 million metric tons of crude oil from the US, making it the largest source of Canada's crude oil imports. Canada's crude oil imports from the US are typically light and sweet grades, while its exports to the US are heavy and sourced from oil sands in Alberta. In 2022, Canada's refined petroleum products (RPPs) imports rose by 5% to 478,000 barrels per day, with Alberta receiving about half of these imports. While Canada's refineries produce more RPPs than Canadians consume, certain parts of the country, particularly eastern provinces like Ontario, Quebec, and Atlantic provinces, import RPPs from the US and other countries due to a lack of pipeline infrastructure.
| Characteristics | Values |
|---|---|
| Canada's refined petroleum products (RPPs) imports in 2022 | 478,000 barrels per day (b/d) |
| Increase in RPP imports from 2021 to 2022 | 5% |
| Total cost of all imported RPPs in 2022 | $26.1 billion |
| Increase in cost of imported RPPs from 2021 to 2022 | 55% |
| Alberta's RPP imports in 2022 | 234,000 b/d |
| Quebec's RPP imports in 2022 | 110,000 b/d |
| Ontario's RPP imports in 2022 | 49,000 b/d |
| RPP imports from the U.S. in 2022 | 381,000 b/d or 80% of total imports |
| RPP imports from the Netherlands in 2022 | 42,000 b/d or 9% of total imports |
| RPP imports from Russia in 2022 | 1,000 b/d or 0.2% of total imports |
| U.S. crude oil imports from Canada in 2019 | 3.8 million barrels per day (b/d) |
| U.S. crude oil exports to Canada in 2019 | 459,000 b/d |
| U.S. crude oil imports from Canada by rail in 2019 | 300,000 b/d |
| U.S. crude oil imports from Canada by rail in 2016 | 91,000 b/d |
| U.S. imports of petroleum products from Canada in 2019 | 610,000 b/d or 26% of all U.S. petroleum product imports |
| U.S. imports of natural gas from Canada in 2019 | 98% of all U.S. natural gas imports |
| Canada's crude oil imports from the U.S. in 2023 | 16.9 million metric tons |
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What You'll Learn
Canada's crude oil imports from the US
Canada's imports of crude oil and petroleum products from the US have varied over the years. In 2019, the US exported 459,000 barrels per day (b/d) of crude oil to Canada, making it the largest destination for US crude oil exports. These exports typically consist of light, sweet grades of crude oil shipped to eastern Canada, while imports from Canada are usually heavier grades sourced from oil sands in Alberta.
The US Energy Information Administration (EIA) highlights the interconnected nature of US-Canada energy trade, with electricity and natural gas also figuring prominently. In 2019, the US imported 52 million megawatthours (MWh) of electricity from Canada, while exporting 14 million MWh. Natural gas exports from the US primarily serve eastern Canada.
Canada's imports of refined petroleum products (RPPs) rose by 5% in 2022 to 478,000 barrels per day (b/d), with the US being the primary source of these imports. Alberta, the largest recipient of imported RPP volumes in Canada, received 234,000 b/d in 2022, primarily consisting of condensate imported from the US via two CER-regulated pipelines, Southern Lights and Cochin. This condensate is essential for blending with bitumen extracted from oil sands to facilitate transportation through pipelines.
While Canada's refineries produce a surplus of RPPs, certain regions, such as Quebec and Newfoundland and Labrador, import a significant portion of their RPP requirements from countries other than the US, including European nations. This diversification of sources is influenced by logistical considerations and the availability of local supplies.
In 2023, almost all of Canada's crude oil exports, amounting to 3.85 million barrels per day (MMb/d), were destined for the United States. This volume was distributed across the five PADDs (Petroleum Administration for Defense Districts) in the US, with PADD 2 (Midwest) and PADD 3 (Gulf Coast) being significant recipients.
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Canada's RPP imports from Russia
Canada's imports of refined petroleum products (RPPs) rose by 5% in 2022 to 478,000 barrels per day (b/d). The demand for RPPs increased, but it did not reach pre-pandemic levels. This demand was due to the growing oil sands production requiring more condensate and the general economic recovery requiring more transportation fuels than in 2021. Since 2010, Canada's imports of refined products such as gasoline, diesel, heating oil, condensate, and jet fuel have roughly tripled. The total cost of all imported RPPs was $26.1 billion in 2022, 55% more than in 2021. This increase was due to the higher volumes of RPPs imported at higher global RPP prices in 2022 compared to 2021. The price of RPPs tends to relate closely to crude oil prices as RPPs are made from crude oil.
Alberta receives about half of Canada's imported RPP volumes, at 234,000 b/d in 2022. This is primarily condensate, which is imported from the US along two CER-regulated pipelines, Southern Lights and Cochin. The condensate is used for blending with bitumen extracted from the oil sands projects to allow it to flow through pipelines. Quebec is the next-largest importer of RPPs, making up 110,000 b/d or 23% of total Canadian RPP imports, followed by Ontario at 49,000 b/d or 10%. The majority of Canadians live in these two provinces and therefore have some of the highest demand for RPPs. Most of the RPPs imported into these provinces are transportation fuels such as gasoline, jet fuel, and diesel. While Canada’s refineries produce more RPPs than Canadians consume, RPPs are still imported into the country because some parts of Canada do not produce enough RPPs to supply local needs.
In 2021, the US supplied 76% (340,000 b/d) of Canada's imported RPPs, while the Netherlands provided 8% (35,000 b/d). The remainder came from several different countries, including the Russian Federation, which supplied about 2% (10,000 b/d) of Canada's total RPP imports. Over the past decade, RPPs imported from the Russian Federation have been relatively low, making up between 0% to 2% of total imported RPPs. In 2023, no RPPs were imported from the Russian Federation following sanctions placed by the Government of Canada on RPP imports from Russia.
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Oil imports into Canada's eastern provinces
Canada's eastern provinces, including Ontario, Quebec, and the Atlantic provinces, are significant importers of oil and refined petroleum products (RPPs). The lack of pipeline infrastructure connecting the oil-rich western regions, such as Alberta, to the eastern provinces is a critical factor contributing to the reliance on oil imports. This dynamic has led to a situation where Canada, despite being the third-largest global reserve holder, spends tens of billions of dollars annually on oil imports, particularly in the eastern regions.
The United States is the largest supplier of oil to Canada, with nearly $95 billion in cumulative imports between 1988 and 2020. However, when considering the period from 2010 to 2020, the United States becomes the top supplier, contributing over $84 billion in oil imports to Canada. This shift is partly due to a change in U.S. policy that lifted a decades-long ban on oil exports. The oil imported from the United States tends to be light, sweet crude that is shipped to eastern provinces.
Quebec stands out as the province with the highest foreign oil imports, totalling over $228 billion since 1988. This amount far exceeds the imports of any other province. Interestingly, a 2020 Ipsos poll revealed that 71% of Quebecers preferred sourcing oil from Western Canada, indicating a potential desire for domestic supply over foreign imports. New Brunswick is the second-highest importer, with nearly $136 billion in foreign oil imports during the same period, largely attributed to Saudi Arabian crude shipped into the Port of Saint John.
In 2022, Canada's RPP imports rose by 5%, reaching 478,000 barrels per day (b/d). Alberta, which accounts for about half of Canada's imported RPP volumes, receives most of its imports from the United States through two regulated pipelines, Southern Lights and Cochin. Quebec and Ontario are the next largest importers of RPPs, with 23% and 10% of total Canadian RPP imports, respectively. The high demand for RPPs in these provinces is driven by their large populations and transportation fuel needs.
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Canada's crude oil imports from Saudi Arabia
Canada's primary supplier of foreign oil is the United States, with Saudi Arabia in second place. In 2017 and 2018, all Saudi oil imported by Canada was processed by the Irving Oil-owned Saint John refinery in New Brunswick, which is the country's largest refinery. This refinery has no access to a pipeline, so every barrel of oil it processes is delivered by tanker or train.
The United States and Canada have interconnected electricity systems, with over 30 major cross-border electric transmission lines. In 2019, the US imported 52 million megawatt-hours (MWh) of electricity from Canada and exported 14 million MWh. In the same year, the US exported 459,000 barrels per day (b/d) of crude oil to Canada, which was the largest destination for US crude oil exports.
In 2022, Canada's imports of crude oil reached their lowest level in over 30 years, continuing a trend that began in 2020 during the COVID-19 pandemic. Crude oil imports decreased by 1% to 467,000 b/d in 2022, down from 473,000 b/d in 2021 and 227,000 b/d less than in 2019 before the pandemic. However, Canada imported 9,000 b/d more crude oil from Saudi Arabia in 2022 than the previous year.
Canada's imports of refined petroleum products (RPPs) rose by 5% in 2022 to 478,000 b/d, as demand increased but did not reach pre-pandemic levels. Alberta received about half of Canada's imported RPP volumes in 2022, primarily in the form of condensate imported from the US through two CER-regulated pipelines, Southern Lights and Cochin. Quebec was the second-largest importer of RPPs, accounting for 110,000 b/d or 23% of total Canadian RPP imports, followed by Ontario at 49,000 b/d or 10%. The majority of Canadians live in these two provinces, resulting in higher RPP demand.
While Canada's refineries produce more RPPs than Canadians consume, RPP imports are still necessary due to uneven distribution across the country. Provinces with tidewater access but limited pipeline connections, such as Quebec and Newfoundland and Labrador, tend to import a larger proportion of RPPs from countries other than the US, including European nations.
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Canada's crude oil imports from other countries
Despite being one of the world's top oil producers, Canada also imports crude oil. Between 1988 and 2020, Canada imported nearly nine billion barrels of crude oil from other countries, averaging over 745,000 barrels per day. In 2023, Canada imported 16.9 million metric tons of crude oil from the United States, which was the largest quantity imported by Canada from any country. Canada's refineries produce more refined petroleum products (RPPs) than Canadians consume, but RPPs are still imported into the country because some parts of Canada do not produce enough to meet local needs. In 2022, Canada's RPP imports rose by 5% to 478,000 barrels per day, as demand increased due to growing oil sands production and economic recovery, which required more transportation fuels.
Alberta receives about half of Canada's imported RPP volumes, primarily in the form of condensate imported from the United States through two CER-regulated pipelines: Southern Lights and Cochin. The condensate is blended with bitumen extracted from oil sands projects to allow it to flow through pipelines. Quebec is the next-largest importer of RPPs, making up 110,000 barrels per day or 23% of total Canadian RPP imports, followed by Ontario at 49,000 barrels per day or 10%. These two provinces have the highest demand for RPPs as the majority of Canadians live there. Most of the RPPs imported into these provinces are transportation fuels such as gasoline, jet fuel, and diesel.
While the United States is a major supplier of crude oil to Canada, Canada is also the largest source of US energy imports. In 2019, US crude oil imports from Canada averaged 3.8 million barrels per day, up from 3.7 million barrels per day in 2018. Crude oil trade by rail has become more attractive due to insufficient pipeline capacity in Canada at times. As a result, US imports of Canadian crude oil by rail have more than tripled from 91,000 barrels per day in 2016 to 300,000 barrels per day in 2019.
Canada's crude oil imports are influenced by factors such as varying oil types and international oil prices. Canada primarily produces heavy crude oil but also has a demand for light crude oil.
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Frequently asked questions
Canada imports tens of billions of dollars worth of oil every year, with the majority of imported RPPs coming from the US. In 2023, Canada imported 16.9 million metric tons of crude oil from the US alone.
Ontario, Quebec, and the Atlantic provinces account for most of Canada's fuel imports. Alberta receives about half of Canada's imported RPP volumes.
Canada's fuel imports come from the US, Saudi Arabia, the Middle East, Africa, and Europe. The US is the largest source of Canada's energy imports.
